The Municipal Insurance Association of British Columbia (MIABC) is evaluating a novel approach to earthquake coverage, to help its members repair crucial infrastructure damage and maintain critical municipal operations in the event of a major seismic episode. MIABC has been working with its reinsurance partners to offer "parametric" coverage so that members would have funds readily available to reestablish water and gas lines, roadways and bridges, and maintain operations of hospitals, schools and other government structures essential for local government operations and disaster recovery.
MIABC members could be challenged to fill financial gaps after an earthquake if federal funding was delayed for any reason, or was insufficient to cover all costs. Under the program being considered, payments after an earthquake would be made to MIABC members based upon modeled losses, thereby providing immediate funds.
For information about how MIABC is evaluating options and considering structure of this unique program, contact Tom Barnes.